The 23rd TPSWG meeting was co-chaired by Deputy Minister of Industry and Commerce Dr. Manothong Vongsay, Ambassador of the European Union to Lao PDR Mr. Mark Gallagher, and U.S. Ambassador to Lao PDR Ms. Heather Variava. Over 80 participants representing various entities, such as line ministries, embassies, development partners, and the domestic and foreign business community, attended the meeting.

During his opening remarks, Deputy Minister Vongsay, emphasized that while we are making good progress in integrating with the regional and global economies, especially in the framework of the ASEAN Economic Community (AEC) and World Trade Organization, a lot still needs to be done. “For our country to gain full benefits from its international integration especially in the context of AEC, it is essential that our country can enhance its national competitiveness by further deepening economic integration, creating a favorable trade and investment environment, and improving productivity of Lao enterprises,” said Deputy Minister Vongsay.

Ambassador Variava congratulated the Ministry and Government of Lao PDR for successfully chairing this year’s ASEAN meeting and drew attention to the significance of the SME stating that, “SMEs are the backbone of Laos’s economy, driving innovation and job creation. By fostering an environment that encourages entrepreneurship, we can improve competitiveness within the region and contribute to the broader goals of ASEAN,” said Ambassador Variava. “The United States remains committed to partnering with Laos to improve the business enabling environment, advance economic reforms, and support small and medium enterprises (SMEs) while fostering economic growth between Laos and its ASEAN partners.”

The meeting discussed draft priority actions in trade and trade related area to ensure smooth transition from LDC graduation, key results of the recent ASEAN Economic Ministers Meeting, the progress of Public Private Dialogue (PPD) under the Lao Business Forum, an overview of the MOIC’s next 5-year plan, and initial concept of the next generation of Trade Related Technical Assistance.

Ambassador Gallagher, in his closing remarks, “We encourage the Lao Business Forum and the Sector Working Group to continue working closely to monitor progress toward an improved business and investment climate that drives job creation and inclusive economic growth.,” said the Ambassador of the European Union.

Deputy Minister Vongsay concluded the meeting by echoing remarks made by his co-chair regarding the importance of having transparent and predictable investment legal framework and streamlined trade regulations in attracting quality investment. “I also fully agree with my co-chair’s assessment on the important role played by public private dialogue under the Lao Business Forum and we will need to double our efforts to address wide range of issues raised at LBF 15, especially the priority reform agenda adopted by the LBF 15,” said Deputy Minister Vongsay.

In closing, Deputy Minister Vongsay added that “on behalf of the Ministry of Industry and Commerce, I would like to reiterate our commitment to collaborating with line ministries, private sector, and development partners to address the binding constraints facing our private sector.”

TPSWG is one of the ten sector working groups under the Round Table Process and is the main forum for policy dialogue between the government of Lao PDR and development partners. The working group meetings are organized semi-annually to address issues related to trade policies, investment promotion, infrastructure development and other matters that affect the private sector and trade within the country.

The post Government, development partners and private sector discuss key challenges and opportunities for promoting private sector development in Lao PDR first appeared on Trade for Development - T4D.

The 22nd TPSWG meeting was co-chaired by Deputy Minister of Industry and Commerce Dr. Manothong Vongsay, Ambassador of the European Union Delegation to Lao PDR Ina Marciulionyte, and U.S. Ambassador to the Lao PDR Heather Variava. Over 80 participants representing various entities, such as line ministries, embassies, development partners, and the domestic and foreign business community, attended the meeting.

During his opening remarks, Deputy Minister Dr. Vongsay, emphasized that Government policies and behaviors play a key role in shaping the investment climate. “Our government has committed to implement several important businesses enabling environment reform measures, including simplification of business entry through revisions of the Investment Promotion Law, Enterprise Law, and the relevant implementing regulations and guidelines; however, ensuring consistent implementation of these reforms remained challenging, especially at local level.” said Deputy Minister Dr. Vongsay.

Ambassador Marciulionyte, highlighted critical issues that have become obstacles for private sector development. “Among several important issues, there are key priority issues for this year that we have considered and discussed among the development partners, and foreign chambers of commerce notably, foreign currency management decision no. 333 issued by Bank of Laos, high transit cost charged by Dry Ports, decree no.238/GOV on professional associations restricting foreigners from representing their firms or organizations in business associations,” said Ambassador Marciulionyte.

The meeting was divided into two main sessions. The first session featured updates of ongoing reforms to improve the Trade and Investment Environment, including the revision of the Controlled List and Investment Promotion Law by representative from the Investment Promotion Department, Ministry of Planning and Investment, followed by an update on the implementation of ASEAN Priority Economic Deliverables for 2024 by representative from the Trade Negotiation and Economic Cooperation Department, Ministry of Industry and Commerce.

The second session focused on the public private dialogue (PPD) process under the Lao Business Forum. Representative from the Lao National Chamber of Commerce and Industry highlighted the key results of the PPD, and reform priorities endorsed at the LBF 15 and representative from MOIC introduced the Prime Minister Decision No. 004 on institutionalization of public private dialogue.

Ambassador Variava, in her closing remarks, welcomed the open discussions on government policy reforms aimed at creating a conducive environment for doing business, fostering trade and investment in the country.“Today’s discussions highlighted the importance of streamlining processes and reducing barriers in order to facilitate trade within the country and with Laos’s neighbors. These efforts are pivotal for the development and growth of businesses across Laos,” said Ambassador Variava.

Deputy Minister Dr. Vongsay concluded the meeting by echoing remarks made by his co-chair regarding the importance of having transparent and predictable investment legal framework and streamlined trade regulations in attracting quality investment. “I also fully agree with my co-chair’s assessment on the important role played by public private dialogue under the Lao Business Forum and we will need to double our efforts to address wide range of issues raised at LBF 15, especially the priority reform agenda adopted by the LBF 15,” said Deputy Minister Dr. Vongsay.

In closing, Deputy Minister Dr. Vongsay added that “I am confident that our development partners, who have long provided development assistance to support the design and implementation of investment climate improvements, will continue to support us in making continuous improvement in critical areas of investment climate that we discussed today” and thanks all participants for their active participation.

TPSWG is one of the ten sector working groups under the Round Table Process and is the main forum for policy dialogue between the government of Lao PDR and development partners. The working group meetings are organized semi-annually to address issues related to trade policies, investment promotion, infrastructure development and other matters that affect the private sector and trade within the country.

The post Government, development partners and private sector discuss key issues that are critical for further improving investment climate in Lao PDR first appeared on Trade for Development - T4D.

The 21st TPSWG meeting was co-chaired by Deputy Minister of Industry and Commerce Mr. Bounthueng Douangsavanh, Ambassador of the European Union Delegation to Lao PDR Ina Marciulionyte, and U.S. Chargée d’affaires to the Lao PDR Michelle Y. Outlaw. Over 80 participants representing various entities, such as line ministries, embassies, development partners, and the domestic and foreign business community, attended the meeting.

During his opening remarks, Deputy Minister Douangsavanh, emphasized the importance of improving the business environment to create favorable conditions to overcome current macroeconomic challenges. “Over recent years we have made several reforms to improve the environment for business. However, much more needs to be done to promote economic diversification and reduce our dependence on the resource sectors as main growth drivers,” said Deputy Minister Douangsavanh.

Chargée d’affaires Outlaw highlighted the expanding partnership between the United States and Lao PDR. “The Working Group’s objective to promote trade and private sector investment is more important than ever in supporting the Government to overcome the ongoing economic challenges and take full advantage of new opportunities with Lao PDR assuming the ASEAN chair in 2024,” said Chargée d’affaires Outlaw. “The United States and other development partners are committed to collaborating closely with the Lao PDR government to help Lao and foreign businesses succeed, creating more job opportunities and driving the Lao economy in the years to come.”

The meeting was divided into two main sessions. The first session featured constraints to private investment, including skill shortages in the Lao labor market presented by the World Bank, key findings and recommendations from the European Chamber of Commerce and Industry in Lao PDR, and a joint business sentiment survey by representatives of the EU Chamber of Commerce.

The second session focused on an update of ongoing reforms to improve the Trade and Investment Environment, including the revision of the Controlled List and Investment Promotion Law by a representative from the Investment Promotion Department, Ministry of Planning and Investment. Licensing Reform was presented by representatives from the Department of Enterprise Registration Management, Ministry of Industry and Commerce.

Ambassador Marciulionyte, in closing, welcomed the meaningful discussions on policy reforms implemented by the Government to strengthen the establishment of a transparent and rules-based regulatory framework. “This working group enables us to work effectively together, taking into account the views from all important stakeholders, in order to better tailor policies, strategies and support programmes, to address bottlenecks faced by businesses,” said Ambassador Marciulionyte.

Deputy Minister Douangsavanh concluded the meeting, recognizing the valuable contributions of all participants and reiterating the government’s commitment to creating a more conducive environment for trade and private sector growth. “The overall business enabling environment has also been improved through implementation of the revised Enterprise Law. However, for Laos to gain full benefits from its international integration especially in the context of AEC, it is essential that Lao PDR can enhance its national competitiveness by further deepening economic integration, creating favorable trade and investment environment, and improving productivity of Lao enterprises.” Said Deputy Minister Douangsavanh in his concluding remarks.

TPSWG is one of the ten sector working groups under the Round Table Process and is the main forum for policy dialogue between the government of Lao PDR and development partners. The working group meetings are organized semi-annually to address issues related to trade policies, investment promotion, infrastructure development and other matters that affect the private sector and trade within the country.

The post Public and Private Sector Engagement to Increase Investment in Lao PDR first appeared on Trade for Development - T4D.

The meeting discussed preliminary findings and recommendations from the Assessment of the Implementation of National Trade Facilitation Roadmap (2017-2022), introduced the updated Lao PDR Trade and Private Sector Development Roadmap (2022-2026) and exchanged views on improving effectiveness of the public private dialogue to address constraints affecting environment for doing business in Laos.

While recognizing the importance of trade facilitation for promoting internal, regional, and international trade, H.E. Dr. Manothong said that “Overall, we have made progress in implementing a range of trade facilitation reforms, but further reforms are necessary and essential to advancing our country’s overall competitiveness and attractiveness for efficiency seeking investment”.

H.E Dr. Manothong also informed the meeting that the updated trade and private sector development roadmap for 2022-2027 validated in May identifies priority actions in support of our national strategy of diversifying the economy, rebuilding from COVID-19, and graduating from LDC status by 2026.
Dr. Manothong concluded his opening remarks by acknowledging the important contributions made by the public private dialogue process in resolving concrete issues facing the private sector and stressing the necessity to further improve its effectiveness.

“Despite significant success and progress being made, a great deal of challenges is lining upon us. One of the obvious challenges is maintaining the level of commitment and dedication to leverage the National Trade and Private Sector Roadmap to be private sector-based platforms as the ultimate objective is not just a conducive environment for traders but the strong and sustainable trading capacity and productivity of businesses, as they are the final beneficiaries.” said H.E. Ms. Ina Marciulionyte, Ambassador of the European Union Delegation to Lao PDR. “In the longer term, accelerating reforms to promote diversification and improve competitiveness in the private sector, supported by improved connectivity, will be pivotal to strengthen the economic and social resilience, and ensure that Laos reaps the full benefits from all the infrastructure investments made in recent years”, H.E Ambassador Ina Marciulionyte, added.

The meeting divided into two main sessions and discussed three topics. The first topic was presented by Deputy Director General of Department of Import and Export, Ministry of Industry and Commerce, who reported on preliminary findings and recommendations from the Assessment of the Implementation of National Trade Facilitation Roadmap (2017-2022). The second topic on updated Lao PDR Trade and Private Sector Development Roadmap (2022-2026) was presented by Ms. Lattanaphone Vongsouthi, Director of Division, National Implementation Unit Division, Ministry of Industry and Commerce, and the last topic on public private dialogue as emerging instrument to address constraints affecting environment for doing business in Laos through public private dialogue was presented by Mr. Thanongsinh Kanlagna, Executive Vice President of the Lao National Chamber of Commerce and Industry.

Before closing the meeting, H.E. Ms. Ina Marciulionyte, Ambassador of the European Union Delegation to Lao PDR, emphasized the need to establish a transparent and rules-based regulatory framework. She also added that “Reforms take time and are not cost-free, but we all hail the positive actions taken by the cabinet under the helm of Prime Minister Phankham Viphavanh”. “Again, I can assຮືັure you that as development partners, we want to support the Lao authorities by better coordinating ourselves, and to contribute to obtain tangible results in the trade and private sector development agenda” further stressed by H.E Ambassador Ina.

Finally, H.E. Dr. Manothong Vongsay, Deputy Minister of Industry and Commerce closed the meeting by acknowledging the importance of prioritizing trade and private sector policy action items, ensuring government ownership, necessity to strengthen inter-agency coordination at both central and local level as well as supporting broad directions to strengthen public private dialogue mechanism under the Lao Business Forum.

The TPSWG is one of the ten sector working groups under the Round Table Process and is the main forum for policy dialogue between the government of Lao PDR and development partners. Participants of the forum usually come from government, development partners, the private sector and civil society. Other 9 sector working groups include Health; Education; Governance; Macroeconomics; Infrastructure; Illicit Drug Control; UXO; Agriculture and Rural Development; and Natural Resource and Environmental Management.

The post Government, development partners and private sector discuss progress on business environment reform, implementation progress of the National Trade Facilitation Roadmap for 2017-2022 and Roadmap for the Trade and Private Sector for 2022-2026 first appeared on Trade for Development - T4D.

The meeting discussed key findings and recommendations from the World Bank’s Lao PDR Country Economic Memorandum (CEM) and MOIC’s Diagnostic Trade Integration Study (DTIS), drew lessons from two ongoing private sector/SME support initiatives, namely Supporting Business Recovery through Matching Grant Scheme under the Business Assistance Facility (BAF) of the Lao Competitiveness and Trade Project (LCTP); and Improving business environment through public private dialogue under the Lao Business Forum (LBF).

In his opening remarks, H.E. Minister Khampheng Saysompheng stressed the importance of improving business environment to create favorable conditions to promote post pandemic economic recovery. The Minister said that we all know that evidence on policy implementation on the ground indicates that our trade and private sector development policies are not always implemented as envisioned and do not always achieve the intended outcomes. Policy and implementation gap are attributed to several factors, including inappropriate policy design, lack of effective implementation arrangement or lack of necessary human and financial resources. However, many noted that recent policy reforms represented sound progress in improving the enabling environment, but that implementation remained problematic. This suggests that the answer to improving investment climate does not always lie in new policies, laws, or regulations, but rather in focusing on better implementation.

H.E. Mr. Paul Kelly, Australian Ambassador to Lao PDR as one of the co-chairs of the sector working group highlighted the social and economic impact of the ongoing COVID-19 pandemic in the country and the importance of the private sector as engine for medium- and long-term economic recovery in his opening remarks. H.E Ambassador concluded his remarks by stressing the importance of having clear and consistent message on key strategy to promote inclusive and sustainable economic growth through economic diversification by leveraging its strengths such as natural resource wealth, a young population, and its unique geographic location; complimenting its new infrastructure with policy reforms; and adopting the trade private sector development Roadmap as result of the DTIS Update.

The meeting divided into two main sessions. Two topics were discussed in each session. The first topic on Lao PDR CEM was jointly presented by WB Senior Economists- Melise Jaud and Kim Edward, who discussed key challenges facing the Lao economy and proposed recommendations to restore macro-fiscal stability and improve competitiveness of the agriculture, manufacturing, and services through leveraging natural wealth and strategic location, and addressing specific investment climate constraints and skill development. The second topic on key findings of the second DTIS Update and proposed priority actions to further improve the business environment, trade facilitation, and sector specific issues to enhance competitiveness of agribusiness, tourism, and general manufacturing sectors.

The second session started with the presentation on lessons learned from supporting private enterprises to improve their resilience and long-term competitiveness using matching grant mechanism under the LCTP by Nick Freeman – Team Leader for Business Assistance Facility. This was followed by an update on progress in resolving specific issues through regular public private dialogue mechanism under the LBF presented by Ms. Valy Vetsaphong, LNCCI Vice President.

BAF team leader highlighted in his presentation that despite the impact of COVID-19, demand for matching grant and general advisory services remains robust because business development services are seen as a way of attaining resilience and preparing for the post-pandemic era. LNCCI Vice President emphasized that while important progress is being made, all LBF stakeholders would like to further enhance the effectiveness of public private dialogue mechanism through strengthening linkage between LBF and Cabinet Meeting as well as formalizing various coordination structures of the LBF.

In her closing remarks, H.E. Ms. Ina Marciulionyte, EU Ambassador reiterated her support for further strengthening of collaboration between the Trade and Private Sector Working Group and Lao Business Forum and encouraged all concerned agencies to continue improving transparency and predictability of the country’s regulatory environment to attract quality investment to better prepare for LDC graduation and long-term economic recovery.

Finally, H.E. Minister Khampheng closed the meeting by acknowledging the importance of adopting and implementing effective crisis response measures to avoid the collapse of businesses, sectors, and economies and continuous improvement of business environment, including implementation of trade and investment commitments under regional and international trading system to accelerate economic recovery.

The TPSWG is one of ten sector working groups under the Round Table Process and is the main forum for policy dialogue between the government of Lao PDR and development partners. Participants of the forum usually come from government, development partners, the private sector and civil society. Other 9 sector working groups include Health; Education; Governance; Macroeconomics; Infrastructure; Illicit Drug Control; UXO; Agriculture and Rural Development; and Natural Resource and Environmental Management.

The post Government, Development Partners, and Private Sector Discuss Medium Term Trade and Private Sector Development Priorities first appeared on Trade for Development - T4D.

The meeting aims to present the medium-term trade development plan and an update on business environment reform.

H.E. Mrs. Khemmani Pholsena, the Minister of Industry and Commerce, provided an opening remark that “The government of Lao PDR recognizes the importance of creating investment-friendly policy and regulatory environment to improve the country’s performance in World Bank Group’s Doing Business Report, which measures regulations affecting key areas of the life of a business from starting a business to resolving insolvency. For this reason, together with our development partners, especially European Union and Australia – co-chaired of our key issues that are critical for further improving investment climate in Laos, focusing on both policy design as well as policy implementation”.

H.E. Ms. Ina Marciulionyte, Ambassador of the European Union Delegation to Lao PDR highlighted the challenges of Lao macro economy that the country has been facing, with a fast-growing debt to finance major infrastructure projects. There is no easy path to recover, but we all know that to ease this fiscal challenge and pursue the implementation of the 9th National Socio-Economic Development Plan (the 9th NSEDP), it is crucial to increase trade and investment, especially the careful consideration of the impact of new infrastructure development, particularly the Lao-China railway and associated special economic zone and dry port, as well as from the Regional Comprehensive Economic Partnership (RCEP). H.E. Ina Marciulionyte also emphasizes the benefits from substantial support from many development partners to strengthen trade and private sector development and seize these showed by the Program Executive Committee Meeting last week. Lastly, H.E. Ambassador also stresses that “EU would really keen to promote more European Investment in Laos, in support to the Lao Green Growth agenda”.

The meeting went through what had been planned in agenda starting from the presentation on Lao PDR Trade Integration Study (DTIS) Update Concept Note; Trade Impact of Lao PDR’s graduation from Least Developed Country (LDC) status; Progress update on the draft 9th NSEDP; Progress of implementation PM Order No. 02 and No. 03 and Public-Private Partnership Decree and the update on preparations for the 13th Lao Business Forum.

Before closing the meeting, Ms. Jane Chandler, Charge d’affaires, Australian Embassy to Lao PDR congratulated Lao government on economic development progress during the COVID-19 pandemic. She also highlighted that trade and private sector development had been long-term priorities for Australian development cooperation in Lao PDR.

Finally, H.E. Mrs. Khemmani Pholsena, the Minister of Industry and Commerce expressed her sincere thanks to the representatives of ministries, departments, embassies, development partners and associations who have been committed to contribute to the development of trade and private sector, and wish for these organizations continue support such development.

The TPSWG is one of ten sector working groups under the Round Table Process and is the main forum for policy dialogue between the government of Lao PDR and development partners. Participants of the forum usually come from government, development partners, the private sector and civil society. Other 9 sector working groups include Health; Education; Governance; Macroeconomics; Infrastructure; Illicit Drug Control; UXO; Agriculture and Rural Development; and Natural Resource and Environmental Management.

The post Ministry of Industry and Commerce organized the 17th TPSWG meeting to present the medium-term trade development plan first appeared on Trade for Development - T4D.